What it does
Most new freelancers pick a rate by copying a salary, and then find they earn less than they hoped. A salary pays you for holidays, sick days, admin and slow weeks. A freelance rate has to cover all of that, plus tax and your own costs, using only the hours you can actually invoice.
Enter the take-home pay you want in a year, your business costs, the share you set aside for tax, the weeks you will not work and the billable hours you expect in a week. The tool gives an hourly and day rate. To compare it with an employee’s pay use salary converter, and once you have a rate, send the bill with the invoice maker.
How to use it
- Enter the take-home pay you want in a year, after tax.
- Add yearly business costs: software, insurance, equipment, a co-working desk.
- Enter the tax and savings share of your income to set aside. Ask your tax authority or accountant if you are unsure.
- Enter weeks off and your billable hours a week. Be honest: most freelancers bill 20 to 30 hours in a 40-hour week.
- Read the rates, then check the table to see what more or fewer hours would mean.
What each setting does
- Tax and savings: the percentage of your billing you keep aside, so the take-home is what is left.
- Weeks off: holidays, sick time and quiet weeks. They are not billed.
- Billable hours: only hours you charge for. Admin and looking for work do not count.
- Days per week: turns the hourly rate into a day rate.
Worked example
You want 60,000 a year to take home, with 6,000 of business costs and 20% set aside for tax. You need to bill 60,000 / 0.8 + 6,000 = 81,000. With 4 weeks off you work 48 weeks, and at 30 billable hours that is 1,440 hours. The hourly rate is 81,000 / 1,440 = 56.25, and a 6-hour billable day is 337.50. Percentages are easy to check with the percentage calculator, and the budget planner helps you decide what take-home you need.
FAQs
Why is my rate so much higher than a salary equivalent? You pay for your own holidays, tools, tax and unbillable time.
Which tax rate should I use? Your best estimate of income tax plus social contributions on your profit. Check the official source for your country. Not financial or tax advice.
Should I add a margin? Many people add 10 to 20% for slow months and late payers.
Where the numbers come from
- Plain arithmetic: billing needed = take-home / (1 - tax rate) + business costs, divided by billable hours. Your own tax rate varies, so check your tax authority's official source.
Standard scientific values, such as constants, atomic weights and melting points, are facts found in every textbook; we name where ours were checked. If you are an author or publisher and want a value, a credit or a table changed or removed, tell us and we will act quickly.
Last updated 2026-11-10.